When a company is considering entering into a new agreement or contract, it is important for the board of directors to pass a resolution to formally approve the agreement. This demonstrates that the decision was made in accordance with the company’s bylaws and that the board is acting in the best interest of the company. To ensure that the board resolution is valid, it is essential to follow the correct format.

Board Resolution Format for Signing Agreement

1. Heading: The heading of the resolution should include the name of the company, the date, the location of the meeting, and a reference to the specific agreement being approved.

2. Introduction: The resolution should begin with an introduction that identifies the board members present at the meeting and the purpose of the resolution. For example, it might state, “Whereas the board of directors of XYZ Corp. held a meeting on [date], and whereas the purpose of the meeting was to consider and approve the Agreement between XYZ Corp. and [other party], it is hereby resolved that…”

3. Resolution statement: The resolution statement should clearly state the board’s decision to approve the agreement. It should be specific and include any conditions or qualifications attached to the approval. For example, it might state, “Resolved, that the board of directors hereby approves the Agreement between XYZ Corp. and [other party], subject to the following conditions: [insert conditions].”

4. Signatures: The resolution should be signed by the board members who were present at the meeting. The signatures should be followed by their printed names and titles.

It is important to keep in mind that the format for a board resolution may vary depending on the company’s bylaws and the requirements of the specific agreement being approved. However, the above format is a good starting point for creating a valid board resolution for signing an agreement.

In conclusion, a board resolution is a necessary step when a company is signing an agreement or contract. The board resolution needs to be written in a specific format to ensure that it is legally valid. By following the above format, companies can ensure that their board resolutions are properly executed and that their decisions are in compliance with their bylaws.